North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Barrick Gold Corp. and Novagold Resources Inc. Aug. 6 reported that initial results from the 2020 optimization drill program at Donlin Gold continue to tap near-surface, high-grade mineralization that could likely be mined during the early stages of operations at the 39-million-ounce gold project in Southwest Alaska.

Donlin Gold LLC – a 50-50 joint venture between Novagold and Barrick – began gearing up for a roughly 22,000-meter drill program at Donlin in February but the field work was suspended in early April due to travel restrictions and other COVID-19 prevention measures in the Yukon-Kuskokwim region of Alaska where the world-class gold mine project is located.

Drilling resumed at Donlin in late May, following the reopening of certain aspects of Alaska's economy and consultation with employees, contractors, and regional villages regarding safety measures. To minimize the risk posed by COVID-19, Donlin Gold implemented a broad set of policies at the project site and the administrative office in Anchorage.

"We have ensured that our operations are working as safely and responsibly as possible alongside our Native corporation partners, Calista and TKC (The Kuskokwim Corp.), providing extensive resources and support in Alaska, particularly in the remote Yukon-Kuskokwim region closest to the project," said Barrick Gold President and CEO Mark Bristow.

With the drill program nearing 60% completion, no employees or contractors at Donlin Gold have tested positive for COVID-19.

As of Aug. 4, a total of 13,795 meters of drilling in 47 holes had been completed at Donlin and assays had been received for 2,246 meters of drilling in nine holes.

Highlighted intercepts from this first batch of results include:

• 41.9 meters averaging 11.61 grams per metric ton gold from a depth of 30.4 meters in hole DC20-1871.

• 45.9 meters averaging 5.03 g/t gold from 35.4 meters in hole DC20-1866.

• 23.4 meters averaging 4.15 g/t gold from 108.3 meters in hole DC20-1866.

• 30.3 meters averaging 4.2 g/t gold from 226.5 meters in hole DC20-1866.

• 7.7 meters averaging 18.4 g/t gold from 60.9 meters in hole DC20-1873.

The Donlin Gold partners said the results from the initial drilling support continued analysis of the updated lithological model and controls of the higher-grade mineralization and exceed the modeled grade-thickness for the deposit.

"These early drill results have improved our understanding of the orebody, supporting the more recent geologic modeling. They also underscore Donlin Gold's significant potential as well as extraordinary optionality to the gold price over multiple cycles and in a mining friendly jurisdiction," said Bristow.

The nearly 42 meters of 11.6 g/t gold encountered in DC20-1871 is a prime example of high-grade mineralization near the surface in the ACMA zone. Other high-grade intercepts had previously been encountered in this area of moderately dense drilling but not of the same magnitude.

Novagold and Barrick said this is an area that has been designated for the early years of mine operation.

The newly obtained data is also expected to enhance the understanding of the mineralized zones and lead the partners to determine the next steps.

"Diligent exploration and detailed geological modeling are essential in establishing a strong foundation on which to deliver optimal value from an asset the size of Donlin," said Bristow.

Donlin Gold, along with its with its Native corporation partners, continues to support Alaska regulators' advancement of the remaining state permits and certificates needed for the development of a mine at the 39-million-oz gold deposit.

Donlin Gold LLC

A strengthened and reissued state right-of-way agreement and lease authorization for the buried pipeline needed to deliver natural gas to the future mine at Donlin Gold is expected in about five months. The issuance of the Alaska Dam Safety certificates, however, has been temporarily paused so that Donlin Gold could concentrate on the ongoing optimization drill program.

"We are delighted that, consistent with our long-term strategy, all this activity is taking place in an environment when the gold price is setting new all-time highs and few, if any, other projects of the size and quality of Donlin Gold are in a position to be developed anywhere in the world," said Novagold Resources President Greg Lang. "With key federal and state permits in hand, we believe that the timeline for this uniquely attractive project in a top tier-1 jurisdiction is in the owners' control."

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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